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Template:Csa Conditions Precedent summ: Difference between revisions
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Oh, hold on: there is one case where this could happen: where a party has committed an Event of Default, had all its {{isdaprov|Transactions}} closed out and, before having settled them all and cleared the slate, it has resumed trading under the same ISDA and put some new {{isdaprov|Transactions}} on. | Oh, hold on: there is one case where this could happen: where a party has committed an Event of Default, had all its {{isdaprov|Transactions}} closed out and, before having settled them all and cleared the slate, it has resumed trading under the same ISDA and put some new {{isdaprov|Transactions}} on. | ||
Readers, if you are currently doing a double take, rubbing your eyes, and thinking, “''What?''” do not be alarmed: this is a perfectly understandable reaction. There is no practical chance that any counterparty would be dopey enough to resume trading with a swap counterparty it had just closed out ''at all'', let alone before the Defaulting Party had finally settled its account in full. Seeing as a full EOD close-out does ''not'' have the effect of formally terminating the {{isdama}} itself, this remains a theoretical possibility, however absurd, and this is, we thing, the contingency for which {{ | Readers, if you are currently doing a double take, rubbing your eyes, and thinking, “''What?''” do not be alarmed: this is a perfectly understandable reaction. There is no practical chance that any counterparty would be dopey enough to resume trading with a swap counterparty it had just closed out ''at all'', let alone before the Defaulting Party had finally settled its account in full. Seeing as a full EOD close-out does ''not'' have the effect of formally terminating the {{isdama}} itself, this remains a theoretical possibility, however absurd, and this is, we thing, the contingency for which {{icds}} is providing. | ||
Interestingly the {{imcsd}} words this provision slightly differently, pulling in any Early Termination Date that has resulted in the termination of all {{imcsdprov|Covered Transactions (IM)}}. This, at least, could attach to some but not all outstanding {{isdaprov|Transaction}}s. | Interestingly the {{imcsd}} words this provision slightly differently, pulling in any Early Termination Date that has resulted in the termination of all {{imcsdprov|Covered Transactions (IM)}}. This, at least, could attach to some but not all outstanding {{isdaprov|Transaction}}s. | ||